Refer to the Figure Shown, Which Represents the Production Possibilities

Multiple Choice

Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements is true?Country A has an absolute advantage at producing both avocados and t-shirts.Country B has a comparative advantage at producing t-shirts.Country B would benefit from trade, but Country A would not.

A) I only
B) III only
C) I and II only
D) II and III only